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We recently started a series of posts on establishing the pre-moneyvaluation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Add to Pre-moneyValuation.
A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. When times are really good for fund raising many teams delay to maximize their valuation. You’re offered a $9 million pre-money to raise $3 million (e.g.
Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. premoneyvaluation and planned to use the money to market the app. premoneyvaluation).
This implies a premoneyvaluation of $1.045M. See my breakdown of week 2 for more on how to calculate premoneyvaluation.). The sharks greeted this with skepticism, and rightfully so, especially given the short time the company has been in business and the relatively low sales volume.
million at a $15 million pre-moneyvaluation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. VC, sales, biz dev, M&A or otherwise. million at a $15 million pre-moneyvaluation. Yes, this was stupid.
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